"AI Replacement" Anxiety Sweeps! Which Industry is Most at Risk? Citigroup: Finance
Citigroup stated that about 54% of banking jobs have great potential to be automated by AI. However, the widespread use of AI may not necessarily lead to layoffs. Citigroup mentioned that financial companies may need to hire relevant employees to ensure the legal and regulatory compliance of AI usage
In the midst of rapid development of AI technology, the anxiety of "AI replacing" is spreading across various industries. Which industry is the most at risk? Citigroup says, the financial industry.
"AI can replace more financial positions than any other industry." On June 19th, Citigroup stated in a research report on AI that about 54% of jobs in the entire banking industry have high automation potential, with an additional 12% of positions possibly enhanced by AI technology.
In terms of AI replacement, the banking industry ranks first in the financial sector. Additionally, Citigroup's report shows that there are 48% and 40% of employment positions with "very high automation potential" in the insurance and capital markets industries respectively.
In other industries, the energy industry has a 43% "automation potential", the tourism industry 38%, software platform industry 36%, and retail industry 34%.
David Griffiths, Chief Technology Officer of Citigroup, stated that generative AI has the potential to disrupt the banking industry and increase industry profitability. He mentioned that at Citigroup, the company focuses on using artificial intelligence in a secure and responsible manner to enhance the strength of Citigroup and its employees.
The Citigroup report points out that based on recent customer surveys, the total profit of the global banking industry in 2028, under the influence of AI technology, is expected to increase from the linearly predicted value of $1.8 trillion to nearly $2 trillion.
In fact, starting from last year, several global banking giants have begun to explore artificial intelligence more in their work, believing that this technology will help employees improve work efficiency while reducing company costs.
Taking Citigroup as an example, the company previously stated that it will train 40,000 programmers to experiment with different AI technologies. The company also mentioned that it has used generative AI technology to quickly review hundreds of pages of regulatory proposals.
JPMorgan Chase is also recruiting AI talent, with CEO Jamie Dimon stating that he believes this technology will allow employers to shorten the workweek to 3.5 days. Deutsche Bank is also using AI to review high net worth clients' investment portfolios, and ING is using the technology to screen potential defaulters.
However, Citigroup points out that even if AI replaces certain positions in the financial industry, this technology may not necessarily lead to a reduction in the number of employees. Financial companies will still need to hire a group of AI managers and talent focused on AI compliance to ensure the legality and security of using this technology.
New technologies do not always result in layoffs. Citigroup cited an example that from the 1970s to the mid-2000s, even after the introduction of ATMs, the number of human tellers continued to rise